Commerzbank AG — Capital/Financing Update 2008

Dec 19, 2008

News Details

Corporate | 19 December 2008 18:45

Commerzbank and SoFFin agree loan programme for Mittelstand (SME)

Commerzbank AG / Corporate Action

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Commerzbank and SoFFin agree loan programme for Mittelstand (SME)

• Commerzbank to grant additional Mittelstand loans totalling EUR 2.5
  bn

• Agreement on EUR 8.2 bn silent participation of SoFFin finalized

• SoFFin guarantee for debt securities of up to EUR 15 bn

Commerzbank will make an additional EUR 2.5 billion in loans available to
Germany’s Mittelstand (Small and Medium-Sized Enterprises) as part of an
agreement with SoFFin (Germany's special fund for the stabilization of the
financial market) made on December 19, 2008. Martin Blessing, Chairman of
the Commerzbank Board of Managing Directors: 'In the first eleven months of
this year, our credit volume to the Mittelstand in Germany grew at a
two-digit rate to approximately EUR 43 billion. This puts us ahead of our
competitors. In what are still difficult economic conditions, we are now
using the increase in Tier 1 capital to expand our loan volume. We deliver
to our special responsibility as a leading market provider by supplying the
German economy with funds.' Market interest rates will be charged on the
loans. In granting the loans, Commerzbank will apply the normal risk and
credit rating criteria.

Today, Commerzbank and SoFFin also finalized the agreements made in
November 2008. SoFFin will provide the Bank with a silent participation of
EUR 8.2 billion as of December 31, 2008. Interest of 9% p.a. will be paid
on the silent participation, which will be 100% eligible for Tier 1
capital. The silent participation will be redeemed at face value. In 2009
and 2010, the bank will not pay a dividend for the previous respective
financial year. However, in years with dividend payments, the interest rate
applicable for the silent participation will increase. Any additional
interest payment is to be derived from the cash dividend total. For each
EUR 4.4 million cash dividend total, 0.01 percentage point is to be added.

As previously announced, SoFFin will grant the Commerzbank Group a
guarantee for debt securities of up to EUR 15 billion. In return, the bank
will pay a commitment fee of 0.1% p.a. of the undrawn facilities. 0.5% p.a.
will be charged on guaranteed interest-bearing debt securities issued with
a maturity of up to 12 months. Maturities of over one year will be subject
to a rate of around 0.95%. The debt securities guaranteed by SoFFin may be
issued with a maximum maturity of 36 months.
19.12.2008 Financial News transmitted by DGAP

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Language: English
Issuer: Commerzbank AG
Kaiserplatz
60261 Frankfurt am Main
Deutschland
Phone: +49 (069) 136 20
Fax: -
E-mail: ir@commerzbank.com
Internet: www.commerzbank.de
ISIN: DE0008032004
WKN: 803200
Indices: DAX, CDAX, HDAX, PRIMEALL
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Hannover, München, Hamburg, Düsseldorf, Stuttgart;
Terminbörse EUREX; Foreign Exchange(s) London, SWX

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